Electronic money or plastic money, for example, a bank card, a credit card, a debit card, a smart card, etc., is related to the use of a computer system and a digital stored value system to achieve money storage and money transfers. Since a consumer may be alleviated from the necessity of bringing too much cash to make a purchase, and since a merchant is not required to check the amount of the cash to confirm a payment for the purchase, the efficiency and convenience of transaction may be promoted. Therefore, electronic money is highly accepted and widely used in present days.
However, a conventional contactless stored value smart card usually lacks the function of card authentication, or has insufficient card authentication measures. Once a fake card is used for a payment, the merchant can only bear the loss on his/her own.
Furthermore, when the conventional contactless stored value smart card is used to make purchases, the transaction record resulting from each purchase is usually stored at the end of the merchant without being transmitted immediately to a card issuer or a financial institution for proceeding with the payment settling process. Instead, a whole batch of the transaction records is only transmitted to the card issuer or the financial institution for the payment processes at the end of a business day, i.e., batch settlement. Since procedures of this batch settlement is not sufficiently timely, chances that transaction records of a merchant do not match purchase records of a smart card may increase, exposing the merchant to the risk of loss.